Podcast
Questions and Answers
What is required for a merchant's firm offer to be deemed valid?
What is required for a merchant's firm offer to be deemed valid?
- A willingness to negotiate further terms.
- An acceptance without any conditions.
- An oral agreement must be established.
- A signed writing assuring the offer will remain open. (correct)
How can an offer to buy goods be accepted under the UCC?
How can an offer to buy goods be accepted under the UCC?
- Only through a verbal acknowledgment.
- Only through a signed written agreement.
- By payment of an advance deposit.
- Through a prompt promise to ship or shipment of goods. (correct)
What distinguishes conforming goods from nonconforming goods?
What distinguishes conforming goods from nonconforming goods?
- Nonconforming goods are always less expensive than conforming goods.
- Conforming goods are delivered on time, while nonconforming goods are late.
- Conforming goods require a written agreement, whereas nonconforming goods do not.
- Conforming goods meet the contract's terms, while nonconforming goods do not. (correct)
What is the common law treatment of consideration in contract modifications as opposed to the UCC's treatment?
What is the common law treatment of consideration in contract modifications as opposed to the UCC's treatment?
In what situation must a modification of a sales or lease contract be in writing to be enforceable under UCC?
In what situation must a modification of a sales or lease contract be in writing to be enforceable under UCC?
Which of the following best describes the term 'additional terms' in the context of contract discussions between merchants?
Which of the following best describes the term 'additional terms' in the context of contract discussions between merchants?
What is the primary purpose of the Statute of Frauds in contract law?
What is the primary purpose of the Statute of Frauds in contract law?
Which of the following is NOT a characteristic of a firm offer made by a merchant?
Which of the following is NOT a characteristic of a firm offer made by a merchant?
What is a characteristic of a destination contract?
What is a characteristic of a destination contract?
Under the UCC, when does risk of loss pass with title?
Under the UCC, when does risk of loss pass with title?
What does a bailment imply in terms of property delivery?
What does a bailment imply in terms of property delivery?
When does risk of loss transition to the buyer if the seller breaches the contract?
When does risk of loss transition to the buyer if the seller breaches the contract?
Which of the following is true regarding shipment contracts?
Which of the following is true regarding shipment contracts?
What occurs when a buyer accepts goods that have defects?
What occurs when a buyer accepts goods that have defects?
In which situation would the risk of loss not pass to the buyer?
In which situation would the risk of loss not pass to the buyer?
What happens to the seller's liability for goods in a destination contract?
What happens to the seller's liability for goods in a destination contract?
When does the UCC apply if a contract involves both goods and services?
When does the UCC apply if a contract involves both goods and services?
What happens if an acceptance to a sales contract includes additional or different terms?
What happens if an acceptance to a sales contract includes additional or different terms?
In a shipment contract, when does the risk of loss pass to the buyer?
In a shipment contract, when does the risk of loss pass to the buyer?
Which law governs contracts for the international sale of goods?
Which law governs contracts for the international sale of goods?
What is the main purpose of Articles 2 and 2A of the UCC?
What is the main purpose of Articles 2 and 2A of the UCC?
If a sales contract is silent on the issue of risk of loss, what is the default rule under the UCC?
If a sales contract is silent on the issue of risk of loss, what is the default rule under the UCC?
Which of the following statements about risk of loss is true?
Which of the following statements about risk of loss is true?
What must occur for a contract to be enforceable under the UCC?
What must occur for a contract to be enforceable under the UCC?
What is required for an irrevocable offer in the context of option contracts?
What is required for an irrevocable offer in the context of option contracts?
Which of the following is not an exception to the statute of frauds regarding the sale of goods?
Which of the following is not an exception to the statute of frauds regarding the sale of goods?
When is writing required under the statute of frauds?
When is writing required under the statute of frauds?
What describes 'Usage of Trade'?
What describes 'Usage of Trade'?
Which of the following is a category of rules of construction according to the content?
Which of the following is a category of rules of construction according to the content?
How can merchants satisfy the writing requirement for sales contracts priced at $500 or more?
How can merchants satisfy the writing requirement for sales contracts priced at $500 or more?
In determining the meaning of an agreement, what does 'Course of Performance' refer to?
In determining the meaning of an agreement, what does 'Course of Performance' refer to?
What is a necessary component for a merchant’s firm offer to be considered irrevocable?
What is a necessary component for a merchant’s firm offer to be considered irrevocable?
What must be demonstrated for parties to show their intention to form a contract?
What must be demonstrated for parties to show their intention to form a contract?
Which of the following is an exception to the Statute of Frauds?
Which of the following is an exception to the Statute of Frauds?
What must be true for partial performance to be recognized in contract enforcement?
What must be true for partial performance to be recognized in contract enforcement?
How do acceptance rules differ between contract law and sales law?
How do acceptance rules differ between contract law and sales law?
What is typically required for modification of a contract?
What is typically required for modification of a contract?
When is a contract not enforceable according to the material terms?
When is a contract not enforceable according to the material terms?
Under what condition does the mirror image rule apply?
Under what condition does the mirror image rule apply?
What distinguishes a sales contract from a general contract?
What distinguishes a sales contract from a general contract?
Study Notes
Sales and Lease Contracts
- Covers the application of UCC (Uniform Commercial Code) to contracts involving both goods and services.
- Acceptance of a sales contract may introduce additional or different terms, resulting in a counteroffer unless acceptance is conditional on those terms.
Risk of Loss
- In shipment contracts, the seller is liable for goods lost or damaged during transport until delivery.
- In destination contracts, the seller retains liability until goods are delivered to the specified location.
- Under UCC, risk of loss does not automatically transfer with title; it is determined by the contract terms.
Passage of Title
- Title passage depends on whether the seller has to deliver a document of title, like a bill of lading, to the buyer.
- Delivery without movement includes bailment, where goods are temporarily delivered without transferring ownership.
Breach of Contract and Risk of Loss
- Risk of loss shifts to the buyer when defects are cured or accepted, even if defects exist.
- If the buyer breaches, they may still incur risk of loss depending on the circumstances.
Acceptance and Consideration
- UCC allows acceptance of an offer through a promise to ship goods or the actual shipment of goods, even if they are nonconforming.
- Modification of sales or lease contracts does not require additional consideration under UCC.
- Written agreements may be needed to modify contracts without consideration.
Statute of Frauds
- Required writing must indicate intent to form a contract and be signed by the party against whom enforcement is sought.
- Special exceptions exist for specially manufactured goods, admissions, and partial performance.
Comparison: Contract Law vs. Sales Law
- Sales law accommodates open terms; contract law requires all material terms to be outlined.
- Under sales law, acceptance can occur even with additional terms unless expressly conditional.
- The statute of frauds for sales law requires a written contract for goods priced at $500 or more.
Parol Evidence Rule
- Prior dealings and trade practices help clarify contract terms.
- Consideration of express terms, course of performance, course of dealing, and usage of trade are essential for understanding contract implications.
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Description
Test your knowledge on the key concepts from 'Business Law Today, Standard Edition' by Roger LeRoy Miller. This quiz covers important topics and summarized cases from the 12th edition of the textbook. Challenge yourself and see how well you understand business law!
